Burberry Group (LON:BRBY) Trading Down 7.1% - Time to Sell?

Key Points

• Burberry Group's stock price dropped by 7.1% to GBX 1,181.96 ($16.01), significantly lower than its previous close of GBX 1,272 ($17.23).
• Research firms have varied opinions on the stock, with Citigroup and HSBC giving it a 'buy' rating and target price of GBX 1,600, while Deutsche Bank set a 'hold' rating with a target of GBX 1,000.
• Insider purchases are notable, with two executives acquiring shares worth over £50,000, indicating confidence in the company's future performance.

Burberry Group plc (LON:BRBY - Get Free Report) traded down 7.1% during trading on Tuesday . The company traded as low as GBX 1,152.50 ($15.60) and last traded at GBX 1,181.96 ($16.00). 1,956,127 shares changed hands during mid-day trading, a decline of 68% from the average session volume of 6,175,073 shares. The stock had previously closed at GBX 1,272 ($17.22).

Analyst Ratings Changes

Several research analysts have recently weighed in on the stock. HSBC reissued a "buy" rating and issued a GBX 1,600 target price on shares of Burberry Group in a research report on Tuesday, September 2nd. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and set a GBX 1,000 price objective on shares of Burberry Group in a research report on Monday, July 21st. Finally, Citigroup lifted their target price on shares of Burberry Group from GBX 1,250 to GBX 1,600 and gave the company a "buy" rating in a research note on Monday, July 28th. Three investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to MarketBeat, Burberry Group has a consensus rating of "Moderate Buy" and an average price target of GBX 1,350.

Burberry Group Stock Down 2.8%

The company has a market cap of £4.09 billion, a P/E ratio of -5,452.15, a price-to-earnings-growth ratio of 1.66 and a beta of 1.06. The company has a current ratio of 1.66, a quick ratio of 1.63 and a debt-to-equity ratio of 136.53. The firm's 50 day moving average price is GBX 1,244.05 and its 200-day moving average price is GBX 1,022.97.

Insiders Place Their Bets

In other Burberry Group news, insider Joshua Schulman acquired 29,744 shares of the stock in a transaction dated Friday, June 27th. The shares were bought at an average cost of GBX 1,069 per share, for a total transaction of £317,963.36. Also, insider Kate Ferry bought 3,228 shares of the firm's stock in a transaction that occurred on Friday, June 27th. The stock was purchased at an average cost of GBX 1,100 per share, with a total value of £35,508. In the last three months, insiders have purchased 34,180 shares of company stock worth $36,837,808. Company insiders own 0.63% of the company's stock.

Burberry Group Company Profile

Burberry Group plc, together with its subsidiaries, manufactures, retails, and wholesales luxury goods under the Burberry brand. The company operates in two segments, Retail/Wholesale and Licensing. It provides womenswear, menswear, childrenswear, beauty, eyewear, shoes, and accessories, as well as leather goods, such as bags.